When the $17 billion deal is done in December, U.S. Airways and American will offer a combined 6700 daily flights to 336 cities in 56 countries. NBC’s Tom Costello reports.

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>>>for years,
american airline
's marketing slogan was something special in the air, and as of today, it is something much more massive in the air, today, the feds approve its merger with
u.s. air
, making it the largest carrier in the world. today, tom costello has more on what it means for those who sit behind the seats of the pilot.

>> reporter: hi, brian, and to get this merger approval, the two airlines had to agree to give up critical take off and
landing slots
at some key airports. when the deal is complete in deputy, the $17 billion merger between u.s. airs and american will create the world's biggest airline, multiple flights to 56 country, 80 million passengers each year. but it also means fewer competing for your business. at
american airlines
hub, travellers were skeptical.

>>i think it usually means that the competition could drive the rates up.

>>i just have a feeling. it always happens, every time there is a merger there is a rate increase.

>> reporter: since
2005
, 25 regional and
main line
airlines have merged, cutting by at least 10% the total number of airline seats, among the biggest deals, delta and northwest, united and continental, southwest and
air tran
, a
u.s. american
merger had the
justice department
concerned that
low cost
carriers would be driven out, driving up costs.

>>the concern is not the bigger cities, it is the smaller cities who are likely to take the brunt of the air fare hikes over the next four years.

>> reporter: to get approval, they demanded they surrender slots to other airlines, at reagan international and washington and new york's
la guardia
. nbc
pete williams
covers the
justice department
.

>>the government insists that giving up flights to
low cost airlines
like jetblue and southwest will lead to more competition and cheaper fares.

>> reporter: today, the ceo said they will have a greater airline, better for our customers and employees. the airlines have agreed to keep their existing hub for at least three years. and the
frequent flier
programs will eventually merge, which means
u.s. airwaysfrequent flier
will now eventually join the one world alliance.

>>tom costello just apparently off the runway there at reagan international.